Sumary of U.S. Banking Regulators Working on Climate Risk Management Guidance, Official Says:
- Acting Comptroller of the Currency Michael Hsu said his agency was working on the guidance in collaboration with other banking regulators to help lenders navigate the physical and transition risks climate change poses to the financial system.
- Climate change could upend the financial system because threats such as rising sea levels, as well as policies and carbon-neutral technologies aimed at slowing global warming, could destroy trillions of dollars of assets, risk experts say.
- “Climate change poses an existential risk to society and the associated financial risks pose safety and soundness risk to banks.
- The Federal Reserve has asked lenders to provide information on the measures they are taking to mitigate climate change-related risks to their balance sheets, Reuters reported in May.